Liverpool Football Club's proposed new stadium has moved a step closer with a government announcement that there will not be an inquiry into the plans.

The secretary of state Hazel Blears has decided after considering the £400m plans and objections to Stanley Park stadium, there is no need to intervene.

She said she was satisfied that the final decision should be made on a local basis.

This means that the club will wait for permission from city council planners.

Some local residents and councillors objected, calling it a "monstrous" development that was too big for the area.

The new £400m stadium will house 114 executive boxes, twice the number in the original design, and is planned to regenerate public land which stands between Anfield and Everton's ground, Goodison Park.

The latest plans for the 60,000-seater stadium include improved leisure and retail facilities.

The Reds' current home will be redeveloped as a car park, sports centre and hotel.